Robinhood bulls: “Another impressive print”
Piper Sandler analyst Patrick Moley slapped a $75 price target on shares of Robinhood Markets after the stock, crypto, and options brokerage reported much better-than-expected results Wednesday after the close, sending the shares up as much as 20% in the after-hours session. His previous target was $54 a share, and he’s had an “overweight” rating on it since August 2024.
He called the results “another impressive print” and noted that a large part of the better-than-expected earnings per share number of $1.01 (versus the Wall Street expectation of $0.42) was due to a one-off tax benefit that added $0.41 to the bottom line. But he wrote that even excluding that and other one-offs...
“HOOD still would have reported a strong beat with $0.54 of EPS. HOOD shares are trading up >20% after hours we suspect due to the 4Q24 beat, strong January metrics, and a number of positive developments on the product roadmap. Bottom line, we believe HOOD is positioned well to win across many areas of its business in the coming years and are becoming increasingly confident in management’s ability to execute.”
Another bullish analyst covering the shares, Dan Dolev at Mizuho, gushed about Wednesday’s numbers, writing:
“There was almost too much to like in 4Q results, so we highlight only a few pearls including: 850K Q/Q growth in funded customers (a marked acceleration vs. 3Q’s ~160K sequential growth), 10%+ gold subscriber attach rate (to 2.64mn), 27% Q/Q growth in AUC to $193bn including 7x Y/Y growth in retirement AUC to $13.1bn (+$3.2bn sequentially), to name a few.”
(Full disclosure: Sherwood Media is an editorially independent subsidiary of Robinhood Markets Inc. I own Robinhood stock as part of my compensation.)
